Petrol and diesel prices across India remained largely unchanged for the fourth consecutive day on Wednesday, March 18, reflecting a phase of stability in retail fuel rates despite continued global uncertainty.
Fuel rates in major cities
According to the latest update reported by Mint, fuel prices in key Metro cities are as follows:
Delhi: Petrol ₹94.77/litre, Diesel ₹87.67/litre
Mumbai: Petrol ₹103.50/litre, Diesel ₹90.03/litre
Kolkata: Petrol ₹105.45/litre, Diesel ₹92.02/litre
Chennai: Petrol ₹100.90/litre, Diesel ₹92.48/litre
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Hyderabad: Petrol ₹107.50/litre, Diesel ₹95.70/litre
Bengaluru: Petrol ₹102.96/litre, Diesel ₹90.99/litre
Lucknow: Petrol ₹94.69/litre, Diesel ₹87.81/litre
Ahmedabad: Petrol ₹94.49/litre, Diesel ₹90.17/litre
Prices continue to vary across cities due to differences in local taxes and transportation costs.
Global tensions, but domestic stability
Even as international oil markets remain volatile, domestic fuel prices have held steady. The ongoing conflict involving the United States, Israel and Iran has disrupted trade routes, particularly through the Strait of Hormuz, raising concerns about supply chains.
The conflict, which began on February 28 following coordinated US-Israeli strikes on Iran, has now entered its third week, with no clear signs of easing.
Who decides fuel prices?
Fuel pricing in India is handled by three major Oil Marketing Companies (OMCs): Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL).
These companies revise petrol and diesel prices daily at 6 am, aligning them with global crude oil prices and currency exchange rate movements.
Amid concerns over supply disruptions, OMCs have introduced stricter fuel supply measures. The practice of supplying fuel on credit has been suspended to regulate offtake.
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HPCL and BPCL have already moved to advance payment systems, while IOCL has discontinued its five-day revolving credit policy.
What affects fuel prices in India?
Several factors determine fuel prices in the country. The most significant is global crude oil prices, as India depends heavily on imports. The rupee-dollar exchange rate also plays a key role, with a weaker rupee increasing import costs.
Additionally, central and state taxes form a major portion of retail fuel prices, leading to regional variations. Transportation costs and demand–supply dynamics further influence the final rates consumers pay.
